China accuses Taiwan of favoring the US and chip tension warm global dispute

The technological dispute between China, Taiwan and the United States has just hit a new level. Now China has accused Taiwan of being delivering its semiconductor industry to the US as a way of obtaining political support.

At the same time, the growing Chinese production of mature chips threatens the survival of western manufacturers. The scenario reinforces concerns about a global imbalance in semiconductor production and the impacts of a possible “chip war”.

China accuses Taiwan of favoring the US

The Chinese government said today (26) that Taiwan would be using his semiconductor industry as a bargaining chip to strengthen ties with the United States. THE Chinese government’s Taiwan Staff claimed that Taiwan’s Progressive Party would be exploring the influence of TSMC to gain political advantages and move away from China’s economic dependence.

Then the Taiwanese government refuted the accusations, arguing that the TSMC is a national asset vital and that their strategic decisions focus on maintaining global leadership in the semiconductor sector.

In recent years, the company has been expanding its production to countries such as US, Japan and Germany as part of industrial diversification. This occurs in a moment of increasing tension between the powers, with the US applying 10% about Chinese products and restricting postcards from China to contain its commercial influence.

China advances in the production of mature chips

In addition to the clash with Taiwan, China intensified the production of ripe semiconductors, reaching 28% of global capacity of these chips and increasing concerns in the West.

While US sanctions prevent Beijing from accessing advanced technologies, Chinese factories focused on the production of chips over 20nm – Fundamental to the automotive and consumer electronics industry.

The rapid expansion already affects western companies, which have difficulty competing with low prices practiced by Chinese manufacturers. An industry executive described the situation as a “Bloody duel”with foreign companies being forced to reduce their operations.

China’s growing capacity to produce mature chips generates excess supply, directly affecting western manufacturers. This aggressive competition can change the global semiconductor market in the coming years

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Layoffs and western reaction

The pressure generated by the Chinese rise has already caused strong impacts on the western semiconductors sector.

Wolfspeed, which was once a world leader in silicon wafers, had to dismiss 20% of your team After seeing your actions plummeted 96% in three years. Onsemi, American chip manufacturer, also announced cuts of 9% in the staffhighlighting the crisis in the sector.

Still, experts warn that without a coordinated global strategy, China’s dominant presence in mature semiconductors can compromise the competitiveness of several western countries.

A new phase in the chip war

The Chinese strategy of subsidizing its semiconductor factories raises concerns about a possible collapse from Western industry. The Chinese government, through the Big Fundhas already invested about US $ 95 billion In the sector, fostering the rapid rise of its national manufacturers.

Meanwhile, the US is still reinforcing their commercial barriers, including the recent prohibition of Chinese imports via postal service and investigations against giants as Google. It is worth remembering that analysts point out that China was not completely prepared for the revolution of generative AIwhich can shape your ability to compete in emerging technologies in the coming months.

With China’s advances in the mature chips and the growing hostility between Beijing, Washington and Taipei, the future of the global semiconductor industry follows uncertain.

The reality is that decisions made in the coming years will surely define the balance of power in world technology.

Source: Tom’s Hardware (1) and (2)